Investment Management – Fourth Quarter 2015
Over the past three months, the deceleration of global economic growth dominated the investment narrative. Would you be surprised to hear the total return of the S&P 500 was 7% over that time, largely reversing August’s declines? We believe that investors continue to be too pessimistic on the U.S. economy, which has been expanding by 2% annually over the last four years.
Domestically, the tepid growth is a product of a two-tier economy. The larger consumer-driven segment is growing on the shoulders of strong employment, increasing wages and rising confidence.